The Effect of Brand Image Perception and Product

Quality Toward the Interest to Buy Consumer Pre-Pay

IM3 Ooredoo

Didin Fatihudin1*, Mochamad Mochklas1, Dika Arista Suryati1

1 Faculty of Economics and Business, University of Muhammadiyah Surabaya, Surabaya, Indonesia *Corresponding author. Email: dienafdloka@gmail.com

ABSTRACT

Indosat Ooredoo is a telecommunications network service provider company in Indonesia. The company

offers communication channels for prepaid and post-paid telephone users under the brand names Matrix

Ooredoo, Mentari Ooredoo and IM3 Ooredoo. IM3 Ooredoo is able to capture a wide market share, especially

among adolescents, students and students. IM3 Ooredoo also provides multimedia, internet and MIDI data

communication services (Multimedia, Internet & Data Communication services). The method of this research

approach with quantitative methods, the technique of collecting data was questionnaire with accidental

sampling technique which was 60 respondents. The analytical method uses multiple linear regression analysis

through normality test, hypothesis test, F test, and t test. The data collected was processed using SPSS which

produces a regression equation Y = 2,422 + 0,421X1 + 0,289X2 + e. From the results of the F test showed

that the variable brand image and product quality simultaneously affect the consumer purchase interest while

the t test shows that product quality is a variable that has a dominant influence on consumer purchasing

decisions.

Keywords: brand image, product quality, consumer purchasing decisions

1. INTRODUCTION

Indosat Ooredoo or PT. Indosat Tbk is a

telecommunications network and service provider company

in Indonesia [1]. The company offers communication

channels for telephone users with prepaid and postpaid

options under the brand names Matrix Ooredoo, Mentari

Ooredoo and IM3 Ooredoo. IM3 Ooredoo is able to capture

a wide market share, especially among teenagers, students

and students who prefer to use 4G network services [2]. 4G

is stable and wide and has a large internet capacity with a

fast internet connection. IM3 Ooredoo also provides

multimedia, internet and MIDI data communication

services (Multimedia, Internet & Data Communication

Services).

Perception is the process of how the stimuli are selected,

organized, and interpreted [3]. Perception is a process that

arises due to sensation, where sensation is the activity of

feeling or causing an exhilarating emotional state. Sensation

can also be defined as a quick response from our recipient's

senses to basic stimuli such as light, color, and sound. With

all this, perception will arise [4].

Purchasing interest is a model of a person's attitude towards

objects of goods which is very suitable in measuring

attitudes toward a certain class of products, services or

brands. Buying interest is considered as a measure of the

likelihood of consumers buying a particular product, where

the high buying interest will have a significant impact on

the purchase decision [5]. Buying interest is the tendency of

consumers to buy a brand or take action to relate to a

purchase that is measured by the likelihood of consumers

making a purchase. From this understanding, it can be

concluded that consumer buying interest is the attitude of

someone who will buy a product or use a service in the

presence of measurement or assessment of their brand [6].

One factor that is taken into consideration in the purchase

of a product is the brand image [7]. Brand Image relates to

attitudes in the form of beliefs and preferences towards a

brand. What consumers think and feel when hearing or

seeing a brand. Brand image is the perception and belief

held by consumers [8], as reflected by the association

embedded in the customer's memory, which is always

remembered for the first time when hearing slogans and

embedded in consumers' minds [9]. Product quality is a

characteristic of a product or service that depends on its

ability to satisfy customer needs that are stated or implied

[10]. Product quality is an important benchmark for the

success of a company. With good product quality, the

company will be able to compete with its competitors. There

are 3 indicators of brand image namely: corporate image,

user image, and product image. consumers, and guarantees

[11].

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and Social Sciences (BIS-HESS 2019)

Copyright © 2020 The Authors. Published by Atlantis Press SARL.This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 53

Quality products and a good brand image (key brand image) is the main key in winning the competition, in the end it will be able to provide a higher value of satisfaction to consumers. Consumers now have demands of a much greater value and variety because they are faced with various choices of products (services) that can be purchased [12]. Smart companies will try to fully understand consumer decision-making processes, all their experiences in learning, choosing, and even using products. Among the alternative processes and decision making there is consumer buying interest [13]. So it can be concluded that the brand

image is an intermediary influence of product quality on consumer purchasing decisions [14]. The main value expected by customers from producers is the highest quality of products and services. Consumers always hope that the goods they buy can satisfy their wants and needs. For that, companies must be able to understand the desires of consumers so that the products produced are in line with consumer expectations. characteristics of an item or service that affect its ability to satisfy expressed or implied needs [15]. Product quality is something that needs to get the main attention of the company or manufacturer, considering the quality of a product is closely related to customer satisfaction, which is the goal of marketing activities undertaken by the company [16]. Some of the prepaid simcard brand performance from 2013-2017 are well known by Indonesian consumers. IM3 Ooredoo's prepaid simcard brand performance has decreased significantly from 2016 15.4% to 13.6% in 2017 [17]. Based on the background and problems above, companies must improve their brand image (brand image) and always provide the best quality products so that in the future it can have an impact on increasing consumer buying interest for IM3 Ooredoo prepaid simcards. In this case, the researcher is interested in conducting a study of Brand Image perceptions and Product Quality Towards the IM3 Ooredoo prepaid consumer purchase decision ". The purpose of this study is to test and analyze the influence between the perception of brand image and product quality on the purchasing decision of IM3 Ooredoo prepaid consumer card. To partially test and analyze which dominant influence between brand image perception and product quality on IM3 Ooredoo prepaid consumer card purchasing decisions. In every business only, marketing and innovation creates value while others create costs. Marketing is a social and managerial process where individuals and groups get their needs and desires by creating, offering and exchanging products that are of value to each other [18]. Marketing is one of the activities in the economy that helps in creating value [19]. Based on these explanations, marketing is an activity that is most important for companies to increase sales of products or services by creating various innovations and having value. The notion of image is the way people perceive and evaluate the brand actually. In order for an image to be embedded in the minds of consumers, marketers must show brand identity through brand communication and contact advice available [10]. Brand image is a public perception of the company and its products. An effective image will affect three things, namely: (1) strengthening the character of the product and the proposed value, (2) conveying the character in a different way so as not to be confused with the competitor's character, (3) providing emotional strength that is more than a mental image. Brand image is also a description of associations and consumer confidence in certain brands. Brand image is the observation and trust held by consumers, as reflected in consumers' associations or memories.

2. RESEARCH METHODS

This research method is ex post facto. Quantitative approach uses Multiple Linear Regression, SPSS program version 25. Primary data is done by collecting the researcher directly from the research object. Secondary data is a source that does not directly provide data to data collectors. The independent variable in this study is Brand Image and Product Quality. dependent variable Consumer purchasing decisions. Total 60 respondents. Using non-probability sampling with convenience sampling or also called accidental sampling.

Figure 1 Conceptual Framework

Hypothetically; Simultaneously suspected to exist; significant influence between brand image (X1) and product quality (X2) on consumer purchasing decisions (Y) of IM3 Ooredoo prepaid simcard. Partially, it is suspected that the dominant product quality (X2) influence on consumer purchasing decisions (Y) is IM3 Ooredoo prepaid simcard.

3. RESULTS AND DISCUSSION

Respondents in this study were Indosat prepaid card buyers in Surabaya. Researchers distributed 250 questionnaires, but only 244 questionnaires could be used as research data. The response rate of 96.6% due to 6 questionnaires did not return, so it cannot be used as research data. From the table of validity test results, in each item the value of Rcount > Rtable (0.254) so that the data obtained from the study indicate that each item statement on each variable can be declared valid. Reliability Test; Cronbach value of alpha variable Brand Image (0.267) and Product Quality (0.674), Consumer Purchase Interest (0.595) is greater than 0.70 so that it can be said that the data is reliable. Table 1 F Test Result

Model Sum of Df Mean F Sig. Square Square 1 Regression 78.757 2 39.378 39.086 .000b Residual 57.427 57 1.007 Total 136.183 59 a Dependent Variable: Interest Buy Consumer Predictors: (Constant), Product Quality, Brand Image

Source: Processed Data researcher (2019) Table 1 shows the Ftest results above, it appears that the Fcount is 39.086 with a significance of 0.000. While the size of Ftable is 2.54. Thus, Fcount (39.086) > Ftable (2.54), Fcount is greater than Ftable. Based on the Ftest test criteria, then H1 is accepted and H0 is rejected or in other words that the allegation that

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states Brand Imaged and product quality has a significant effect on the purchasing decision of IM3 Ooredoo prepaid simcard consumers. Table 2 t test result

Model

Unstandardized Standardized

t Sig. Coefficients Coefficients

B Std. Beta Error 1 (Constant) 2.422 1.706 1.419 .134 Brand Image .421 .134 .317 3.147 .003 Product Quality -.013 .053 .546 5.419 .000 a Dependent Variable : Consumer Purchase Interest

Source: Processed Data researcher (2019)

In this study partial testing (ttest) is used to determine whether the independent variable Brand Image (X1) and Product Quality (X2), on Consumer Purchase Interest (Y). Based on the ttest can be obtained on the product variable shows the value of the comparison of tcount with ttable is 3.147 > 1.672 with a significance value of 0.003 < 0.05. So, it can be concluded that the brand image variable has a significant positive effect partially on consumer buying interest. The results of the calculation of the ttest of the price variable showed that the comparison value of tcount with ttable was 5.419 > 1.672 with a significance value of 0.000 < 0.05. It can be concluded that the product quality variable has a partially positive effect on consumer buying interest. Based on the ttest, it can be concluded that the Product Quality variable that has a dominant influence on the buying interest of IM3 Ooredoo prepaid simcard consumers. These are the results of the Multiple Linear Regression Test. 𝑌 = 𝛼 + 𝛽&𝑋&+𝛽(𝑋( + 𝑒

𝑌 = 2,422 + 0,421𝑋& + 0,289𝑋( + 𝑒 Table 3 Coefficient of Determination (R2)

Model R R Square Adjusted R Std. Error of the Square Estimate 1 .0760a .578 .564 1.004

a Predictors: (Constant), Product Quality, Brand Image Source: Processed Data researcher (2019)

From the table 3, it is known that the value of R Square is 0.578 or 57.8%. This value indicates that 57.8% of consumer buying interest (Y) is influenced by brand image (X1), and product quality (X2). The RSquare value is good because it is 0.5, while the remaining 42.2% is influenced by other variables outside the study. The coefficient of determination is seen from the value of R Square because the independent variable is more than one.

3.1. Brand Image Against IM3 Ooredoo Prepaid Consumer Simcard purchasing decisions

The results of the above study show that brand image partially influences the purchasing decision of IM3 Ooredoo prepaid simcard consumers. This is evidenced by conducting a ttest in which the results of the calculation of the value of tcount for the brand image variable 3.147 > 1.672 with a significance value of 0.003 < 0.05 means that the

brand image variable (X1) significantly influences the consumer's buying decision. Brand image is one of the identities or logos of a company that serves to facilitate consumers in the selection or purchase of certain products. In addition, a good brand image will greatly affect buying interest. So that consumers' perceptions will put high trust in the product. This research is in accordance with previous research the effect of product quality, brand image, and promotion of interest in buying acer notebooks in Yogyakarta. In this research the brand image variable significantly influences buying interest [14].

3.2. Product Quality on IM3 Ooredoo Prepaid Consumer Simcard purchasing decisions

The results of this study indicate Product Quality has a significant influence on consumer buying interest on IM3 Ooredoo prepaid simcards. This is evidenced from the results of the ttest where the results of the calculation of the tcount for the product quality variable 5.419 > 1.672 with a significance value of 0.000 < 0.05 means that the quality product (X2) significantly influence consumer purchasing decisions. A product is an item that is offered to consumers in accordance with their needs and desires. One of the main values that customers expect is a high-quality product, with the characteristics possessed by these products can increase consumer interest in purchasing decisions. This research is in accordance with previous research from the Influence of brand image, product quality, and prices against interest in buying children's clothing. In this research product quality variables significantly influence buying interest [6].

3.3. Brand Image and Product Quality on IM3 Ooredoo Prepaid Consumer Simcard Purchase Decisions

Based on the results of the simultaneous test shows the F-calculated value of 39.086 with an expected significance of 0.000. When compared with the expected significance level of 5%, the significance of the F-count is smaller than the expected significance level (0% < 5%). The perception of brand image and product quality simultaneously has a positive and significant effect on consumer purchasing decisions. One form of consumer behavior is consumer interest or desire for goods or services. Buying interest is formed from the attitude of consumers towards a product with a certain brand. Consumers who have an interest in buying a product show a sense of pleasure towards the product that is followed so that they have plans to make a purchase. This study is in accordance with previous research the effect of brand image factors and product quality on purchasing interests of gita clothing modiste customers in Yogyakarta [19]. In this research the brand image and product quality variables significantly influence buying interest.

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4. CONCLUSION

Based on the results of research testing two conclusions can be drawn. First, the effect of brand image perception and product quality has simultaneous/joint influence on IM3 Ooredoo's prepaid consumer simcard purchasing decisions. Second, the two independent variables that have a significant dominant effect on IM3Ooredoo prepaid consumer simcard purchasing decisions are product quality variables. From the results of the research conducted by researchers provide input. To increase buying interest in consumers, it is recommended that Indosat Ooredoo company further improve the quality of its products, especially in 4G network problems, plus sometimes it is still unstable. In order, IM3 Ooredoo prepaid simcard consumers will trust even more with its quality in accordance with the brand (brand) that has long been known by the public. Indosat Ooredoo provides bonuses or choices for more and cheaper internet packages so that consumers of IM3 Ooredoo prepaid simcards are more comfortable using their products. Indosat Ooredoo pays more attention to poor internet connection speeds so that IM3 Ooredoo prepaid simcard consumers can get what they want. Indosat Ooredoo is always consistent with the product program that has been created so that IM3 Ooredoo prepaid simcard consumers feel happy and satisfied with the company's services.

ACKNOWLEDGMENT

The author would like to thank the Chancellor of the University of Muhammadiyah Surabaya for funding support for this research. Acknowledgments were also conveyed to LP3I of the Muhammadiyah University of Surabaya and all of the faculty and economics faculty colleagues in completing this research and paper.

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